Subscribing to the adage, “give a man a fish and he will eat for a day, teach a man how to fish and he will eat for a lifetime,” Financial Poise offers its audience objective and plain English education about investing. If you are looking for recommendations on particular stocks or looking to make a quick buck trading, you came to the wrong place. Financial Poise teaches investors about the fundamentals of investing for the long term.
On March 6, 2013, NASDAQ OMX Group, Inc. announced a joint venture with SharesPost, Inc. to launch a new secondary market trading platform for the purchase and sale of private company securities. The new marketplace, to be called The Nasdaq Private Market (NPM,) will be a private market for resales of restricted securities, with the main objective of providing increased liquidity for early investors, founders, and employees of private companies by enabling the efficient buying and selling of private company shares. Subject to regulatory approval, NPM is slated to become operational later in 2013. The new private trading platform presents an opportunity for accredited investors who have held restricted securities of a private company for at least one year to exit their investments.
FundersClub is a new type of venture capital platform, built around a unique online marketplace that allows accredited investors to become equity holders in FundersClub-managed venture funds – which then fund pre-screened, private companies. AIMkts spoke with CEO Alex Mittal about all things FundersClub to get some insight into why they’re industry wave makers right out of the gate, among other things.
CircleUp is an equity crowdfunding platform, presently open only to accredited investors, which primarily features existing U.S. consumer products companies. Ryan Caldbeck, CircleUp’s CEO spoke with AIMkts about raising capital, their focus retail and consumer goods and CircleUp’s presence as an investment platform.
In my role as an Investor Executive at CircleUp, an equity based crowdfunding site focused on the consumer and retail market, I spend most of my day talking with investors. One question I’m asked all the time is what Robe de Soirée is the difference between the various crowdfunding platforms? Here are some guidelines to help investors navigate the landscape.
Accredited investors who are not experienced in making such investments will suffer some degree of information overload, as they get up to speed on these investment categories. There will also be scams and schemes designed to take advantage of their lack of knowledge.
Whereas crowdfunding can be thought of as a primary market, a pre-IPO market is a secondary market. Stated another way, crowdfunding involves the sale of restricted securities by the issuer of such securities whereas a pre-IPO market is one where a holder of restricted securities can sell them to a third party.
U.S. farm real estate retained its value over the decade 2000 to 2010, despite the housing market’s tumble [see charts below]. In fact, the average value of land and buildings on farms has steadily increased since the late 1980s, with the sole exception of 2009.
The average investment made by an angel investor in a startup venture is about $37,000. Angel investors expect an average 26 percent annual return at the time they invest. If they do more than a couple of angel deals, they believe that one-third of their angel investments will result in substantial capital losses.
A study by three authors at the University of Oxford (UK), published in February 2013, concluded that investors in new PE funds “should be extremely wary of basing investment decisions on the [reported] returns…of the current fund.”
In his book Private Capital Markets (Wiley, 2011), Rob Slee recognizes five stages of company growth, from an investment perspective: (1) seed, (2) startup, (3) early, (4) expansion, and (5) later or mature. This is not the only way to define the stages of a private company, but it’s the most useful for our purposes at AIMkts. The following table shows how we loosely define them, along with the investors who align with each stage. Below the table are further explanations.